Nigeria's Cashew Association Seeks FG Support to Enhance Value Chain

News in brief:

-Cashew association urges FG to provide incentives and low-interest loans for processors.

-High production costs and logistics challenges threaten industry growth and jobs.

The National Cashew Association of Nigeria has called on the Federal Government to provide targeted incentives to farmers and processors to unlock the full potential of the country’s cashew value chain. National President of the association, Dr Joseph Ajanaku, appealed to an Extraordinary General Meeting recently held in Abuja. He said government intervention, particularly in the form of low-interest agro-processing loans, would enable operators to remain competitive in the global market.

Ajanaku urged authorities to provide financing at single-digit interest rates of between three and five per cent, noting that current lending rates of 25% to 35% were unsustainable.

Rising Costs Threaten Profitability

He decried the increasing cost of production, storage and processing, alongside rising energy expenses, which he said were eroding profit margins across the sector. According to him, many farmers and processors are struggling to break even under prevailing economic conditions.

“Through such incentives, our processors can break even and compete favourably in the global market,” he said.

Ajanaku noted that the cashew industry employs more than five million Nigerians and produces about 350,000 metric tonnes annually. He warned that restrictive policies could threaten these jobs while creating significantly fewer opportunities in processing.

“If we want to process over 350,000 metric tonnes of cashew, we cannot employ more than 35,000 people,” he said.

Decline in Production Raises Concerns

The NCAN president said Nigeria’s cashew output has dropped from about 700,000 metric tonnes annually to between 350,000 and 400,000 metric tonnes. He contrasted this with countries such as Côte d’Ivoire, which now produce over one million metric tonnes.

In addition, he recalled that a decline in prices in 2017 led many farmers to cut down their cashew trees, a situation the association had to address through interventions.

According to Ajanaku, most Nigerian cashew farmers operate on less than one hectare of land and face significant production and logistics constraints. He stated that many farmers travel between five and 15 kilometres to harvest produce, incurring additional labour and transportation costs.

Balanced Approach to Value Addition Needed

He stressed that while value addition is important, it must be implemented in a way that improves farmers’ income and sustains livelihoods.

“The best approach is to support farmers to boost production while also providing incentives for processors to compete globally,” he said.

Ajanaku urged the government to address logistical bottlenecks and provide broader support to reduce production costs. He said such interventions would ensure farmers receive fair value for their produce and strengthen the overall competitiveness of Nigeria’s cashew industry.